Powerball winners take home significantly less than the advertised jackpot amount due to federal and state taxes. Typically, the lump sum cash payment is about 40-50% of the advertised jackpot before taxes. After federal taxes, there is an automatic withholding of 24%, but the total federal tax rate can reach up to 37% depending on the winner's taxable income, further reducing the amount. State taxes vary widely from 0% in states like Texas and Florida to about 10.9% in states like New York. For example, on a $950 million jackpot, the lump sum cash payout might be about $428.9 million. After the 24% federal withholding, that drops to around $326 million, and with a marginal federal rate up to 37%, the take-home could be around $270 million before state taxes. With state taxes, the final amount could be even lower depending on the residency state. In summary, winners generally take home roughly 30-35% of the advertised jackpot if they choose the lump sum and after federal and state taxes are applied.
